New AIAG Tools Designed To Help Automotive Companies
Two case studies of automakers and suppliers offer insights on common challenges and lessons learned.
Southfield, Mich., August 15, 2013 /3BL Media/ – AIAG, a not-for-profit, member-supported organization focused on collaboration with a wide range of manufacturing companies and service providers, today announced that it has published a pair of case studies to help illustrate how automotive companies are managing the complex conflict minerals reporting requirements confronting the industry.
“A federal judge’s recent ruling against a challenge to new conflict mineral rules means the law will be upheld, thus creating a heightened sense of urgency for some companies to accelerate their reporting activities in advance of the May 2014 deadline,” said Tanya Bolden, corporate responsibility program development manager at AIAG. “Working with our member companies, we have created a two-part tool kit designed to help them on this journey.”
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, and 2012 rules finalized by the United States Securities and Exchange Commission (SEC), require all companies subject to SEC filing rules to report to the SEC by May 31, 2014 if any of their products, produced in calendar year 2013, contain conflict minerals. The rules have global implications: even companies headquartered outside of the United States, and those which do not report to the SEC, may be subjected to conflict minerals requests from customers that do report to the SEC.
The case studies feature two different perspectives on the compliance process. The case studies are:
“Automotive Industry Approaches to Conflict Minerals Reporting: A Case Study of Automakers and Suppliers” is based on interviews with five AIAG member company representatives who are responsible for leading the conflict minerals compliance efforts at their respective companies—two automakers and three Tier 1 suppliers. The case study is organized around three phases of the compliance process: Getting Started, Engaging the Supply Chain, and Looking Ahead. In each section, the study summarizes the common Challenges and Lessons Learned among participants:
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Conflict Minerals Compliance Reporting Process: A Collaborative Case Study,” was written by members of AIAG’s Conflict Minerals Working Group (CMWG), which also includes representatives of automotive OEMs and suppliers. The case study is intended to provide general information about the conflict minerals compliance process and to provide working assumptions where there is an absence of clarity for automotive manufacturers in the SEC final rule. The case study includes practical information on topics including “Six Steps to Determine Possible SEC Filing Obligation,” and “The Difference Between Filing and Reporting Companies,” as well as definitions and explanations of commonly used terms. The document concludes with a collection of Frequently Asked Questions. Both documents include links to helpful resources and a Supplier Check-list.
“With these case studies, we’re showing how progressive automotive companies are approaching the conflict minerals compliance process,” said Bolden. “By sharing lessons learned, we can help the entire industry meet these responsibilities effectively and efficiently.”
About AIAG
AIAG is a unique not-for-profit organization where, for more than 30 years, OEMs, suppliers, service providers, government entities and individuals in academia have worked collaboratively to drive down costs and complexity from the supply chain via global standards development and harmonized business practices. AIAG membership has grown to more than 960 members and includes renowned manufacturers, and many of their parts suppliers and service providers. For more information, visit
www.AIAG.org.
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